unconventional "focus"

I'll bite on the arguement that STO and BPT are into unconventional Cooper Gas.

Yes, both these companies have exposure to this play. Both are far larger companies than GOG however so let's examine the material differences in the approach of STO, BPT and GOG to this high risk play.

I'll refer you to the following presentations:
STO http://www.santos.com/library/040310_Santos_Investor_Presentation_Delivering_Transformational_Growth.pdf
BPT http://www.beachenergy.com.au/IRM/Company/ShowPage.aspx?CPID=2245&EID=80989513&PageName=UBS%20Energy%20and%20Resources%20Conference,%20Sydney,%20Reg%20Nelson
GOG http://www.drillsearch.com.au/LinkClick.aspx?fileticket=n78NYSoW_LE%3d&tabid=3450&mid=6155&language=en-AU

First STO's transformational Growth presentation! No mention of the Cooper project whatsoever so can we assume that STO regard the Cooper unconvential as of being INSIGNIFICANt in the context of their business.

Cooper Basin deep gas is not known as "Knox's Folly" Note to rocket boy- don't cite as proof of this plays viability a company who view it as insignificant.

Next, BPT's Aiming For Long Term Consistent Value Creation presntation. Page 4 is of interest here! There are three sets of points, the first two being germane to the argument here. First BPT touch on their existing reserves and production. Then there's the "game changing" points. Note points- there are three of them, one of which is the Cooper Deep play, the others being conventional exploration in Africa and value adding to their EXISTING portfolio by LNG conversion.

So is the Cooper Deep play "Nelson's Folly"? There are a number of points to consider here. First there is no mention of disposing of existing production assets as is the case with GOG- indeed one of the Value Creation points is enhancement of the existing reserves! In GOG's case existing production is on the block and BL hopes to dispose of it "COMPLETELY" in the next fortnight. Second there is a high risk/high reward conventional play which forms a focus for the company. On a scale applicable to GOG this might be something like Flinders or a Canadian play. Unfortunately those assets are included in Lingo's rush to dispose of all DLS assets (and Gippsland). Other assets which MAY have had transformational potential could be the Carnarvon Basin permit- let me remind you, seismic shot, prospects/leads isentified then abandoned by Lingo and pals, various Canadian plays hinted at by CER (I'm thinking of plays analogous to North Ricinus, Mica, or even Seal here)- and the Gippsland permits which Lingo hopes to dispose of imminently. My point here is that BPT are not abandoning their conventional portfolio to focus on the Cooper Deep play. It cannot justifiably be called "Nelson's Folly"!

GOG however is a different abimal altogether. Their presentation "The Cooper's Leading Mid-Tier OIl & Gas Exploration Company is 14 pages (leaving out the title page and disclaimers), twelve of which are devoted solely to Lingo's Folly. Page six is devoted to the DLS production assets in the Cooper, assets which Lingo has stated are destined for sale within the next fortnight. This is alluded to on page 14 of the presentation- disposal of minority assets (ie 2% Naccowlah and 11% Tintaburra)

To summarise, STO, a large company, regards the Cooper Deep play as insignificant in their portfolio- hardly a glowing citation. BPT, a mid-tier company, see it as somewhat important but only as a complement to their existing conventional portfolio of production and exploration assets. GOG is a self proclaimed "mid-tier" company who's MD has a strategy of disposing of ALL existing conventional production and exploration assets and plunging the cash into a high risk strategy in a play deemed insignificant by STO and as one part of a three part strategy by BPT.

Truly we are talking about Lingo's Folly here!

Let's not hear any more of this garbage about "STO and BPT think Lingo's Folly is a great prospect" from pholk here! Neither company thinks this play is worth disposing of their conventional assets and focussing wholly on it. That is why it is called Lingo's Folly and NOT Knox's Folly or Nelson's Folly!

TR

Cooper Deep is truly Lingo's Folly!